The Problem Solvers Caucus Backs the American Franchise Act

The bipartisan Problem Solvers Caucus just endorsed the American Franchise Act (H.R.5267). This matters for franchise owners across America.

The Numbers Tell the Story

Franchise businesses employ 8.8 million workers. They generate nearly $900 billion annually. These aren’t just statistics. They represent family-owned businesses in your community. And the Problem Solvers Caucus is aware of these facts.

The Problem: Regulatory Uncertainty

Federal labor standards keep changing. Franchise owners can’t plan ahead. They can’t invest with confidence. The constant uncertainty hurts both business owners and their employees.

What the American Franchise Act Does

The American Franchise Act creates clear, uniform standards for franchise relationships under federal labor law.

Here’s the key provision: Joint employer liability only applies when franchisors directly control essential employment terms. That means hiring, firing, compensation, or scheduling decisions.

Think about it this way: Franchisors provide brand guidance and operational support. Local franchise owners manage day-to-day employment decisions. The law would finally reflect how franchises actually operate.

There is Strong Bipartisan Support for The American Franchise Act

Representatives Kevin Hern (OK-01) and Don Davis (NC-01) co-lead the bill. It currently has 74 cosponsors, including 13 Problem Solvers Caucus members.

The business community is rallying behind it. Endorsements include:

• International Franchise Association
• National Federation of Independent Business
• National Restaurant Association
• American Hotel & Lodging Association
• U.S. Hispanic Chamber of Commerce
• U.S. Black Chambers
• Over 90 additional organizations

What This Means for Your State

Take North Carolina as an example. More than 30,000 franchises operate there. They employ over 328,000 workers and generate approximately $34 billion for the state economy.

Congressman Don Davis puts it clearly: “This bill is rooted in fairness, opportunity, and ensuring entrepreneurs from every walk of life have a real shot at living the American Dream.”

The Bottom Line From The Problem Solvers Caucus

From a Press Release that was sent to me:

Small businesses need consistent rules to succeed. Congressman Chuck Edwards (NC-11) nailed it: “The American Franchise Act is a clear step toward providing the certainty franchise owners need to grow, invest, and continue creating jobs.”

Congresswoman Hillary Scholten (MI-03) added: “For too long, uncertainty around federal labor standards has made it harder for small businesses to invest and grow.”

Why This Really Matters

Here’s what nobody talks about: Regulatory uncertainty doesn’t just hurt franchise owners. It destroys opportunity.

When franchise owners can’t predict their legal exposure, they stop expanding. They delay hiring. They put growth plans on hold. Every prospective franchisee faces a business environment where the rules might change tomorrow.

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You want to know why some people hesitate to buy franchises? It’s not always the investment. It’s the fear that Washington will redefine their business relationship after they’ve already signed the agreement and invested their life savings.

Note: The current President changes his mind on a daily-sometimes hourly basis. This creates real angst among small business owners all over the country.

It’s All About Small Business Owners Including Franchisees

This legislation endorsed by the Problem Solvers Caucus isn’t about protecting big corporations. It’s about protecting the local franchise owner who employs your neighbors, sponsors your kid’s Little League team, and keeps their business open during tough times.

The franchise model has created wealth for millions of Americans. It’s given people from every background a proven path to business ownership. But only if the rules are clear. Only if aspiring franchise owners can make informed decisions without wondering if federal regulators will move the goalposts.

That’s what the American Franchise Act delivers: clarity, fairness, and a fighting chance for small business owners who play by the rules.

The question now is whether Congress will turn bipartisan support into actual law. Franchise owners…and everyone who values entrepreneurial opportunity, should be watching closely.

What Happens Next

This endorsement from the Problem Solvers Caucus adds momentum to the American Franchise Act. With bipartisan support and broad business community backing, the legislation has a real shot at passage.

For franchise owners, this could mean the regulatory clarity they’ve been waiting for. For prospective franchise buyers, it signals a more stable business environment ahead.

The franchise model works when everyone knows the rules. It feels like this legislation aims to deliver exactly that.